Premier visits drought-affected areas of New South Wales

New South Wales Premier Mike Baird is making his first tour of drought-affected regions of the state since taking office four months ago.

After landing in Tamworth from a trip to Weilmoringle on the NSW-Queensland border, the Premier addressed the media.

Mike Baird quote

Rather than the much anticipated announcement of further drought assistance, the Premier stated the trip had been eye-opening.

He says policies that promote drought-proofing properties will be a priority, but gave no time frame for when they might be announced.

"Obviously we are not making any announcements today but I can assure you we are listening and this is part of what this tour is about to go and listen first hand to understand the challenges, not in a brief, but to see them," he said.

"But I can assure you this that we are the farmer's friends and we are going to everything possible to support them particularly at their hour of need.

"I think I've come back with a much deeper understanding of what our farmers are facing day to day."

The Premier says his government will be responding to the conditions he experienced on the visit.

Farmer urges Premier to help out

During the one-day trip to Weilmoringle on the NSW-Queensland border, the Premier is visiting the property of Ed and Jill Fessey, who have been preparing their property for drought.

Ed Fessey says their work with bore caps and pipes has helped them be drought prepared, but the situation is now getting dire.

He says it's positive that the Premier is visiting, so he can see the extent of what policies have worked and what still needs to be done.

"The drought has been going on here for about 29 months, we've had about 40 per cent of our average rainfall. It's made it difficult, the duration of the drought," he said.

"We are going in to uncharted territory historically.

"Lots of policy decisions can have effects on drought. It's not just the lack of rain.

"What we are trying to say to the Premier is that, because of the duration of the drought, not many people have money left to invest in to co-contribution-type programs such as farm innovation and pipe and cap, but they do need some money on the ground to sustain their businesses.

"They are just looking for a bit of help to get over the line and into the future."

The region around Weilmoringle is experiencing some of its lowest annual rainfall on record.

NSW Farmers pleased to get Baird out to the bush

The President of the New South Wales Farmers Association says she has come out of the trip hopeful about new policies.

Fiona Simson says it is always a benefit for people in power to see just how dire the situation is.

"It was great to be able to take the Premier out to visit some of our affected farmers, to have him talk to people actually on the ground, for him to be able to actually experience for himself what it's like out there," she said.

"You always hope that there might be some announcement but by the same token we like evidence-based policy in NSW and that is what we really want and if it means that we have the opportunity now to sit down with him and to talk through what he has actually experienced today and what the government currently has on the table and what the needs are out there in those regions and if we end up with better policy I think that's a good outcome for us.

"I think most of the farmers out there at the moment feel like the Government has abandoned them in terms of in-drought support.

"It's very difficult to see the cash moving through some of those rural and regional communities and let's face it cash is king in some of those communities, we do need some dollars in those rural and regional communities to enable them to continue to function."

Minister for Western NSW calls for farm insurance scheme

Minister for Western NSW Kevin Humphries says he wants to develop a program of insurance for farms, particularly crops, where the State Government protects farm incomes in the event of a drought.

He says while the NSW Government has a AAA credit rating it is better placed to guarantee farm incomes than a third party.

"When drought bites in, and certainly after the second year that we are here in the north-west, it really is about loss of income," he said.

"People like myself are very interested in looking at the whole issue around multi-peril insurance and income protection for farmers. Other jurisdictions have it, particularly the United States and Canada.

"We are a much much more secure entity to underwrite such a scheme and any policy would be far cheaper underwritten by a government that's still got its AAA credit rating rather than a third party.

"There's a whole lot of discussion that needs to happen on that front."

Mr Humphries says he is putting a paper to Cabinet, but says there needs to be a lot more discussion.

He says his proposal would be taking crop insurance to the next level and aims to protect income during drought, when farmers rapidly become cash poor.